Selling to the Public Sector
Working with Cardiff Council
Presented by Steve Robinson
Head of Commissioning & Procurement
Cardiff Council
About Cardiff Council
• Unitary authority since 1996 – delivering services to
346,000 residents
• Largest employer in Wales – 15,500 employees
• All areas of the Council rely on bought-in goods,
services and works. In 2010/11:
– 9,591 suppliers / contractors
– 378,047 invoices processed
– £316 million spent
Spend in 2010/11
Regional Spend Analysis
Spend Distribution by Region 2010/11
140,000,000.00
4500
4128
129,101,782.81
4000
127,991,412.47
3500
2766
3000
80,000,000.00
2500
60,000,000.00
2000
1500
40,000,000.00
961
873
863
1000
30,217,597.62
20,000,000.00
500
20,315,861.09
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8,439,884.52
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Value £
100,000,000.00
0
Number of Supplier
120,000,000.00
Our Challenge
• Public sector facing unprecedented financial
pressure and need to reduce overall cost
• Deliver improved citizen-focused services
• Need to secure greater efficiency and effectiveness
• Focus on procurement
– Deliver improved value and cashable
savings
– Reduce overall spend
– Process efficiency improvements
Commissioning and Procurement
Strategy 2011 - 2015
• Sets the Strategic Direction
• New ways of working
– Commissioning
– Category Management
– Strategic Sourcing
www.cardiff.gov.uk/procurement
Category Management
• Category Management – a strategic approach to procurement
• A structured approach to delivering value and efficiency
savings by managing spend in discrete market facing
categories
Demand Side Levers
Supply Side Levers
Buy less or eliminate spend
Aggregate or Bundle Spend
Standardise or change
specification
Substitution
Change Nature of Supplier
Relationship
Understand Total Acquisition
Cost
Four Strategic Priorities
Internal Rules
• All procurement carried out in accordance with the Council’s
Contract Standing Orders and Procurement Rules
Value
Process
Advertisement
Up to £3,000
Minimum of 1 quotation
Not normally advertised –
Council staff directed to search Council’s
Supplier Directory
£3,000 to £10,000
Minimum of 2 quotations
Not normally advertised –
Council staff directed to search Council’s
Supplier Directory
£10,000 to
£100,000
Minimum of three formal
tenders must be invited
Advertising discretionary – generally
taken from Council’s Supplier Directory
Over £100,000 to
EU Threshold
Minimum of four formal tenders
must be invited
Advertising discretionary – generally
taken from Council’s Supplier Directory
Above EU
Threshold
EU Procurement Directives apply Adverts placed in OJEU via Sell2Wales
EU / UK Regulations
• The Council must comply with EU and UK
Procurement regulations
• EU Procurement Directives
– Requires all tenders / contracts with spend in
excess of £174k for goods and services and £4.3m
for works to be subject to open competition
– Provides minimum timescales for
advertisements and tender submissions
• Tenders two stage – Select and Award
• Applies to both Open and Restricted Procedure
Managing Risk
• Select Stage / Pre-qualification viewed as key barrier
to SME but Council needs to manage risk
• Current standing and past performance
–
–
–
–
Economic and Financial Standing
Capacity and Capability
Health and Safety
Sustainability / Equalities and Diversity
• Safety Schemes In Procurement (SSIP)
Safety Schemes In Procurement
Mutual Recognition
One Way Recognition
Schemes registered at April 2012
Economic Wellbeing
• Although changes to be gradual they will
result in:
–
–
–
–
Reduction in overall spend
Aggregation of spend across the Council
Greater use of collaborative arrangements
Improved compliance
• Reduction in the number of suppliers
and contractors the Council directly contracts with
• Aggregation and collaboration will inevitably lead to
larger value contracts
Smarter Procurement
We need to act smarter
–
–
–
–
–
–
–
–
Understanding of business needs and market
Pre-tender market engagement
Use of Lotting Strategies
Ensure Pre-Qualification requirements
proportional to contract
Encourage Consortia / Collaborative Bids
Contract clauses re Supply Chain Opportunities
Community Benefit Plans
Effective contract and supplier relationship management
Source Cardiff
• Source Cardiff is focused on improving
access to lower value opportunities
• Focused on implementation of Opening
Doors Charter / Barriers to
Procurement Opportunities
recommendations
– Advertising opportunities for goods and
services above £25K through Sell2Wales
– Phased removal of approved supplier lists
– Use of Sell2Wales SQUiD for prequalification
– Standardised thresholds and
documentation across Welsh public sector
Cardiff Council Website
www.cardiff.gov.uk/procurement
• Website – to be upgraded over the next year
• Supplier satisfaction survey http://surveys.cardiff.gov.uk/procurementExt/